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Etihad plans big job cuts as growth slows

ABU DHABI, December 19, 2016

UAE national carrier Etihad Airways is set to slash jobs across several units, highlighting the pressure on carriers in the Gulf region to adapt to slowing growth after years of aggressive expansion, said a report.

The Abu Dhabi-based airline is undertaking “organizational reviews and restructuring” to “reduce costs and improve productivity and revenue,” reported Bloomberg, citing an Etihad statement.

This will result in “a measured reduction of headcount” in some parts of the business amid an “increasingly competitive landscape” and a weaker global economy, it stated.

Gulf airlines are facing slower growth, with Emirates Group reporting a 64 per cent plunge in first-half profit while Qatar Airways said demand from the oil and gas industry was softening during the oil-price drop, said Bloomberg.

The layoffs started in the last few weeks and will range from about 1,000 to as many as 3,000 jobs, stated the report citing people familiar with the plans.

Several dozen people have already left the information-technology department and reductions are also planned in the human resources and commercial sales units. Cuts will also involve cabin crew and ground staff, they stated.

Etihad’s staffing had almost tripled to 20,292 in the past eight years, as its fleet expanded to 122 aircraft from 42, said the report. It employs 26,769 including subsidiaries and employees abroad.




Tags: Etihad | job cuts | growth slows |

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